World Perspectives

Trade Finance Hole; Trade Policy Shift

Trade Finance Hole The U.S. Export-Import Bank votes to authorize up to $450 million in coverage to include agricultural commodities sold to Iraq. The official financing support may have become more critical as Reuters reports that commodity trade financing by banks is “drying up at a rate not seen in more than 20 years.” The report says 80 percent of global trade is intermediated by trade finance, but banks are backing away from supporting it because the business may not fit regulators’ interpretation of balanced risk. This means that either private trade finance must become more available or official credit lenders will have to intercede more.  Trade Policy Shift U.S. trade legislation moves through the arcanely...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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